eBay Acquires Depop From Etsy in $1.2 Billion Deal
▼ Summary
– Etsy is selling the secondhand clothing app Depop to eBay for $1.2 billion in cash, a move it says will allow it to focus on its own core marketplace.
– Etsy originally acquired Depop for $1.62 billion nearly five years ago, during a period of rising popularity for secondhand clothing apps.
– Depop is a fast-growing, youth-oriented platform, generating about $1 billion in gross sales in 2025 with nearly 90% of its active buyers under age 34.
– The sale occurs as Etsy faces post-pandemic growth challenges and increased competition, with its own revenue growth having slowed significantly.
– This transaction continues a pattern for Etsy of acquiring and later divesting niche online marketplaces, following similar sales of Elo7 and Reverb.
In a significant shift for the online resale market, eBay has agreed to purchase the fashion app Depop from Etsy for $1.2 billion in cash. This strategic acquisition allows Etsy to sharpen its focus on its core marketplace operations while positioning eBay to capture a younger demographic deeply engaged in secondhand fashion. The announcement marks a notable reversal from Etsy’s 2021 purchase of Depop for $1.62 billion, highlighting the dynamic nature of the e-commerce sector.
Depop, which launched in 2011, has carved out a unique space as a social commerce platform favored by younger shoppers. The company reported roughly $1 billion in gross merchandise sales during 2025, demonstrating its substantial reach. Its growth in the United States was particularly strong, nearing 60 percent compared to the previous year. The platform’s community is notably youthful, with data showing seven million active buyers at the end of 2025, nearly 90 percent of whom were under the age of 34. It also supports over three million active sellers, creating a vibrant peer-to-peer ecosystem.
eBay’s leadership expressed strong confidence in Depop’s future under its ownership. CEO Jamie Iannone stated the app has established a trusted, socially-driven marketplace with impressive momentum in pre-owned fashion. He believes eBay’s extensive scale, complementary services, and operational expertise will provide a solid foundation for Depop’s continued expansion and long-term success.
For Etsy, the divestiture comes during a period of recalibration. The company has faced challenges sustaining the rapid growth it experienced during the peak of pandemic-driven online shopping. It now contends with intense competition from giants like Amazon and fast-fashion disruptors such as Temu and Shein. Etsy’s revenue growth slowed to 2.2 percent year-over-year in 2024, a decrease from the 7.1 percent growth seen in 2023. The company is set to disclose its full 2025 financial results imminently.
Etsy CEO Kruti Patel Goyal framed the sale as a move to concentrate resources on the primary Etsy marketplace. She praised the Depop team for building a distinctive brand and product rooted in a clear purpose and a powerful community, noting its status as one of the fastest-growing fashion resale platforms in the U.S. Goyal expressed confidence that Depop is poised for its next growth chapter as part of the eBay family.
This transaction continues a pattern for Etsy of acquiring and later selling specialized online marketplaces. In recent years, the company has similarly purchased and divested other platforms, including the Brazilian e-commerce site Elo7 and the musical instrument marketplace Reverb. The Depop sale is anticipated to be finalized before the end of the second quarter this year.
(Source: TechCrunch)
